the parties, it is important that the
arbitration should not without our consent affect our rights, and this
Government has accordingly thought proper to make its views known to the
parties to the agreement, as well as to intimate them to the Belgian and
Spanish Governments.

The questions growing out of the proposed interoceanic waterway across
the Isthmus of Panama are of grave national importance. This Government
has not been unmindful of the solemn obligations imposed upon it by its
compact of 1846 with Colombia, as the independent and sovereign mistress
of the territory crossed by the canal, and has sought to render them
effective by fresh engagements with the Colombian Republic looking to
their practical execution. The negotiations to this end, after they had
reached what appeared to be a mutually satisfactory solution here, were
met in Colombia by a disavowal of the powers which its envoy had assumed
and by a proposal for renewed negotiation on a modified basis.

Meanwhile this Government learned that Colombia had proposed to the
European powers to join in a guaranty of the neutrality of the proposed
Panama canal--a guaranty which would be in direct contravention of our
obligation as the sole guarantor of the integrity of Colombian territory
and of the neutrality of the canal itself. My lamented predecessor felt
it his duty to place before the European powers the reasons which make
the prior guaranty of the United States indispensable, and for which the
interjection of any foreign guaranty might be regarded as a superfluous
and unfriendly act.

Foreseeing the probable reliance of the British Government on the
provisions of the Clayton-Bulwer treaty of 1850 as affording room for a
share in the guaranties which the United States covenanted with Colombia
four years before, I have not hesitated to supplement the action of my
predecessor by proposing to Her Majesty's Government the modification of
that instrument and the abrogation of such clauses thereof as do not
comport with the obligations of the United States toward Colombia or
with the vital needs of the two friendly parties to the compact.

This Government sees with great concern the continuance of the hostile
relations between Chile, Bolivia, and Peru. An early peace between these
Republics is much to be desired, not only that they may themselves be
spared further misery and bloodshed, but because their continued
antagonism threatens consequences which are,